If you’re enrolled in the Federal Long-Term Care Insurance Program (FLTCIP), you may have already received notification from the administrators of the program, Long Term Care Partners, LLC. Enrollee Decision Period letters have been sent to FLTCIP enrollees impacted by the premium increase effective January 1, 2024, and the decision period deadline is November 9, 2023. At the end of the day, federal workers enrolled in FLTCIP have to choose between higher premiums or lower coverage.
FLTCIP Enrollees Impacted By The Premium Increase
According to the FLTICP website, you’ll be impacted by the increase if you’re enrolled in FLTCIP 1.0, FLTCIP 2.0, or the FLTCIP Alternative Insurance Plan (AIP), and you’re not currently eligible for benefits or waiting for a decision on a pending claim.
The amount of the increase varies based on your group and also determined by a combination of benefit options like your benefit period and/or inflation protection option, in addition to your issue age and current plan.
There may be exceptions depending on your issue age which is the age you applied and were approved for coverage. If you’re excluded from the increase, you’ll receive a letter of notification.
“Private LTC policies offer ways to lower your premium and customize your coverage for your specific needs.“
Is It Time To Consider Alternatives To FLTCIP?
If it looks like higher premiums for your FLTICP coverage will take a larger bite out of your budget than you previously planned, it may be time to consider Long-Term Care policies offered by an insurer in the private sector.
Private LTC policies offer ways to lower your premium and customize your coverage for your specific needs. Many LTC policies also offer a 10% to 20% ‘good health discount’ plus discounts for couples who purchase shared-care insurance. These and other advantages are not available with FLTCIP coverage.
Other Options To Replace Or Augment Your FLTCIP Coverage
Purchasing an annuity with a Long-Term Care Rider is an option to consider. The annuity provides a stream of guaranteed retirement income while the LTC rider can be used tax-free to pay for non-medical, custodial care in a nursing home. If you pass away without needing the LTC coverage, your beneficiaries can likely collect the accumulated value of the annuity.
Short-Term Care (STC) insurance is another option. Policies typically cover in-home care, assisted living, and nursing homes for 12 months or less. With premiums ranging from $100 to $125 per month, STC insurance is highly affordable. Consider meeting with an FRC® trained advisor who understands your federal benefits and can help you compare insurance products that may offer you a better value.
